Fortescue mine hit by cost blowouts

Original article by Nick Evans
The Australian – Page: 15 & 19 : 15-Jan-21

Fortescue Metals Group advised in October that its Iron Bridge magnetite project in Western Australia was on budget. However, industry sources have suggested that the cost of the $US2.6bn ($3.4bn) project could potentially blow out by up to 25 per cent. Factors such as rising input costs and the impact of the COVID-19 pandemic on labour supply and wages are said to contributed to the likely cost blowout. Fortescue has previously advised of a cost blowout at its Eliwana iron ore mine.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Shipping industry baulks at extra fees at Port Hedland for iron ore – Australia’s most important export

Original article by Karen Michelmore
abc.net.au – Page: Online : 12-Jan-21

The Pilbara Ports Authority will introduce a $13,450 levy on all large iron ore shipments from Port Hedland, beginning on 1 March. The Western Australian government will use the levy to finance a buyback of up to 400 dust-affected homes in Port Hedland. The levy has been criticised by Shipping Australia CEO Melwyn Noronha, who says it is inappropriate for ship operators to be required to pay to address the dust problem. Ports Minister Alannah MacTiernan contends that similar levies have been used to recover costs in the past.

CORPORATES
PILBARA PORTS AUTHORITY, SHIPPING AUSTRALIA LIMITED, WESTERN AUSTRALIA. DEPT OF TRANSPORT

Rio, traditional owners healing Juukan Gorge wounds

Original article by Brad Thompson
The Australian Financial Review – Page: Online : 24-Dec-20

Resources giant Rio Tinto and the Puutu Kunti Kurrama and Pinikura traditional owners have issued a joint statement about future co-operation in the wake of the destruction of ancient indigenous rock shelters in May 2020. The PKKP Aboriginal Corporation acknowledged that Rio Tinto has taken action to address the "hurt and devastation" caused by the blasting at Juukan Gorge, but noted that much more work must be done to ensure that similar incidents do not occur in the future.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Iron ore miners dig in for fight over capacity at Port Hedland

Original article by Brad Thompson
The Australian Financial Review – Page: 18 : 23-Nov-20

Iron ore producers Mineral Resources, BHP, Fortescue Metals Group and Hancock Prospecting have been asked to contribute to an independent review to determine the maximum capacity of Port Hedland. The Western Australian government wants the review to be completed by December, and it comes after the mining companies rejected the government’s call for a $10 billion outer harbour to be constructed at Port Hedland. Growth plans outlined by the four companies amount to output of at least 690 million tonnes per annum, while the government believes that Port Hedland’s maximum capacity could be pushed to around 650 million tonnes.

CORPORATES
MINERAL RESOURCES LIMITED – ASX MIN, BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, HANCOCK PROSPECTING PTY LTD

Forrest unveils ambitious Fortescue renewables plan

Original article by Brad Thompson
The Australian Financial Review – Page: 14 & 18 : 12-Nov-20

Fortescue Metals Group has outlined plans to become a major player in the energy sector via a massive investment in renewables. Fortescue chairman Andrew Forrest had told the pure-play iron ore miner’s AGM that it will initially aim to produce 235 gigawatts of energy via renewables, as it transition to an "renewables and resources" company. Meanwhile, CEO Elizabeth Gaines has stressed the importance of Australia’s trading relationship with China.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

Gina Rinehart’s wealth soars as Hancock Prospecting reports $4b profit

Original article by Nick Toscano
The Sydney Morning Herald – Page: Online : 5-Nov-20

Hancock Prospecting has reported a 2019-20 after-tax profit of $4bn, compared with $2.6bn previously. The company benefited from the strong price of iron ore during the financial year. Hancock’s iron ore assets include the Roy Hill mine and a 50 per cent stake in the Hope Downs joint venture. Hancock also controls Atlas Iron, which operates the Mt Webber iron ore mine in the Pilbara. Meanwhile, Hancock has paid a maiden dividend of $475m and repaid a $US7.2bn ($10.1bn) debt some four months ahead of schedule.

CORPORATES
HANCOCK PROSPECTING PTY LTD, ATLAS IRON LIMITED

BHP moves to protect heritage sites in Pilbara

Original article by Paul Garvey
The Australian – Page: 15 & 20 : 18-Sep-20

BHP’s Australian head of minerals Edgar Basto has appeared before a parliamentary inquiry into Rio Tinto’s destruction of ancient rock shelters at Juukan Gorge. He said the resources giant is engaging with traditional owners with regard to its $US3.4bn ($4.7bn) South Flank iron ore project in the wake of the incident. BHP was given approval under Western Australia’s Aboriginal Heritage Act to destroy 40 Aboriginal heritage sites just days after Rio Tinto’s blasting at Juukan Gorge in May. However, BHP has already agreed to change its plans for South Flank to protect at least 10 of the sites.

CORPORATES
BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Fortescue to deliver Forrest record pay-out

Original article by Peter Ker
The Australian Financial Review – Page: 13 : 24-Aug-20

The consensus of analysts polled by Bloomberg is that Fortescue Metals Group will post a record underlying profit of $US4.7bn ($6.6bn) for 2019-20, and a final dividend of $0.90 per share. Fortescue founder Andrew Forrest is set to receive more than $1bn in dividends for the second half, and about $1.85bn for the full year. This compares with a total distribution of $1.24bn in 2018-19. Forrest and his wife are significant donors to a range of philanthropic causes via their Minderoo Foundation.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, MINDEROO FOUNDATION

Rio in Pilbara royalties scandal

Original article by Nick Evans
The Weekend Australian – Page: 19 & 22 : 8-Aug-20

Rio Tinto has advised directors of the Gumala Aboriginal Corporation that royalties from the Yandicoogina iron ore mine in the Pilbara have been underpaid for a number of years. The resources giant has paid the GAC some $40m plus interest to cover the underpayments, but the GAC is said to have requested a full audit of Rio Tinto’s royalty payments and access to the underlying data that it uses to calculate regular payments. The Yandicoogina land use agreement was signed in 1997.

CORPORATES
RIO TINTO LIMITED – ASX RIO, GUMALA ABORIGINAL CORPORATION

Up $11bn, Forrest has a profitable pandemic

Original article by John Stensholt
The Australian – Page: 15 : 22-Jul-20

The share price of pure-play iron ore miner Fortescue Metals Group has more than doubled since March. Its market capitalisation topped $51bn on 21 July, making it one of the 10 biggest companies on the Australian sharemarket. Fortescue’s founder Andrew Forrest is now estimated to have total wealth of about $20bn, with the value of his stake in the company having increased by more than $11bn since the coronavirus-induced sharemarket rout in mid-March. Forrest and his wife are also high-profile philanthropists, having donated more than $2bn to their Minderoo charitable foundation.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, THE MINDEROO FOUNDATION PTY LTD